Hot Money Monday: These are the most in-demand stocks on the ASX right now
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Each Monday, Stockhead recaps the ASX stocks that are running hot with investors.
The analysis is based on the Relative Strength Index (RSI), a technical gauge which measures how trading momentum is affecting the price action.
A reading of 70 is seen as the level at which a company may have been overbought. If a stock has a reading of 30 or below, it could be undervalued.
Click here for a more detailed rundown of what the RSI does and how it’s used.
While there’s usually a pretty good reason if a given stock is running hot (or cold), investors are also on the lookout for opportunities where the price action has separated from fundamentals.
Here’s a summary of the stocks that were running hot for the two weeks ended Friday, November 13:
Scroll or swipe to reveal table. Click headings to sort.
A total of 29 stocks recorded a 14-day RSI measure of more than 70, up from 24 in the week prior.
Among the leaders was Japara Healthcare (ASX:JHC), which rose for six straight sessions capped off by a 21.82 per cent gain on Friday on no news.
The aged care operator was negatively disrupted by COVID-19, with shares in the company falling from around $1 in February to 35c in February.
In a trading update on October 30, the company said the second COVID-19 outbreak in Victoria — where it has 33 of its 50 homes — had a “noticeable impact on occupancy and operations during the first months of FY2021”.
Buy a November rally has seen JHC rise from around 40c to a Friday close of 67c.
Two other stocks running hot were Anax Metals (ASX:ANX), which rallied strongly following its re-listing on the ASX (from its previous iteration as Aurora Minerals) and engineering firm EVZ Ltd (ASX:EVZ), which bounced sharply following a strong trading update.
Here are the stocks that were running cold for the two weeks ended Friday, November 13: